Future of Analytics The Lure, Promise and Pitfall of Data

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1 Future of Analytics The Lure, Promise and Pitfall of Data Terry Smagh Business Unit Executive Analytics Asia Pacific

2 We all walk past solvable problems and leave opportunities untapped every day TM

3 WHAT S CHANGED IN THE WORLD TODAY? A world awash with data The re-invention of the world in code The advent of cognitive computing Yet only 15% of organizations have the capability to leverage data and advanced analytics across their organization. HBR Insight Economy Study

4 OUR POINT OF VIEW Data is the new basis of competitive advantage Front runners will: Drive business outcomes by applying more sophisticated analytics across more disparate data sources in more parts of their organization. Capture the time value of data by developing speed of insight and speed of action as core differentiators. Change the game in their industry and profession by infusing analytics into everything.

5 DATA IS BECOMING THE WORLD S NEW NATURAL RESOURCE FOR CREATING DIGITAL VALUE AND BEATING THE COMPETITION Yet only 15% of organizations have the capability to leverage data and advanced analytics across their organization HBR Insight Economy Study

6 We surveyed a number of businesses Identified 341 respondents based upon their usage of big data and analytics tools for innovation Conducted cluster analysis with 81 variables Posed questions with the following themes: Goals for innovation Barriers to innovation Metrics to measure innovation returns Treatment and types of innovation projects How big data and analytics are used to innovate

7 Clustered the results Challenges around data were amongst the top 3 followed by skills and culture Data quality 63% Data accessibility Data availability 48% 48% Availability of skills Knowledge of using data to impact change 31% 35% Risk of operational disruption Funding constraints 23% 21% n=341

8 THREE DISTINCT GROUPS EMERGED Strugglers Struggle to support innovation with big data and analytics 41 % 29% Leaders Successfully innovate using big data and analytics 30% Strivers Strive to develop innovation based on big data and analytics

9 And then we looked at what makes those groups Different 8% Leaders 40% Outperformers 52% n=25 Outperformers Organisations that achieved high revenue growth and profitability Strivers Strugglers 18% Underperformers 40% Underperformers 42% Organisations that achieved low revenue growth and profitability n=97

10 OUT-PERFORMERS make better use of data than Under-Performers!

11 MAKE DATA SIMPLE WITH AN OPEN FOR DATA STRATEGY THAT ACCELERATES THE PACE AND AGILITY OF INSIGHT AND INNOVATION Empower All Data Professionals with a user-centric, subscription-like, and collaborative approach Enable More Discoveries of new and unknown trends with all data and put them into action Build Better Engagement using a range of managed data services that seamlessly scale With Open Data Examination and Trust provide governance, security, trust, and curation across the entire data lifecycle And an Open Source and Hybrid Cloud Platform Approach faster innovation, greater flexibility, and a better user experience

12 EMPOWER ALL USERS THAT USE DATA WITH THE TOOLS THEY WANT DELIVERED VIA CONSUMER SUBSCRIPTION-LIKE MODEL OUTPUT INPUT Key Considerations Self-service, ondemand access Start small and grow Subscribe to the multiple tools you want, include open source-based Ability to seamlessly collaborate Ensure control, security, and governance Communicate results Create and build model Deliver and deploy model Evaluate Understand problem and domain Ingest data Transform: clean Explore & understand data Data Engineers Data Scientists Business Analysts ANALYSIS Transform: shape App Developers

13 SOME ORGANIZATIONS ARE USING ANALYTICS TO SEIZE OPPORTUNITIES AND SOLVE PROBLEMS, TRANSFORMING INDUSTRIES, ORGANIZATIONS AND PROFESSIONS Complying with mandates, understanding clients Exploring data for competitive advantage Understanding risk, accelerating decisions Credit Reporting + Penalty risk reduced to <1% Savings: ~ 300,000 Understanding customer behavior 9.5M+ consumers identified for business opportunity signals Identifying traffic risk factors Queries of 2.5 billion transactions 50%+ faster, reports 70% faster Real-Time Fraud Analysis 100% increase in subscribers 80% reduction in serious accidents Millions of Euros of illegally shipped goods seized

14 COGNITIVE BUSINESS IS A THINKING BUSINESS Cognitive business The next evolution of human and systems capabilities, where technology enhances, scales and accelerates human expertise

15 DATA AND ANALYTICS ARE THE NECESSARY FOUNDATION FOR A COGNITIVE BUSINESS Make sense of industry business needs and take action DESCRIPTIVE + PREDICTIVE + COGNITIVE Discover Report Analyze Predict Decide Act Understand Reason Learn Gain unique insight into people, things and businesses DATA YOU POSSESS + DATA THAT HELPS YOU COMPETE + DATA THAT S IN MOTION Customer records Transactional systems Institutional expertise Operational systems Content systems News Events Image data Social media Internet of Things Sensory data Geo-spatial Weather

16 THE COGNITIVE INDUSTRY Integrating Cognitive Computing, a data driven Digital Network and a secure and scalable Infrastructure to drive value from business ecosystems Machine Learning Algorithms Natural Language Processing Cognitive Computing Digital Network Mobile & Social Omni-channel Analytics Predictive Analytics Digital Operations Cognitive IT Infrastructure Big Data Integration Security Resilience Enabling Infrastructure Business Eco-systems Customer Economic Choices Customer Value Chains Ecosystem Data, Services, and Partners Cloud Enabled Platform

17 We all walk past solvable problems and leave opportunities untapped every day It s time to seize this moment

18 COGNITIVE BUSINESS IS A THINKING BUSINESS